Cheap, Fast and Easy Bridging of ETH on Umbria Network
Ether (ETH), the native cryptocurrency for the Ethereum Network, can be transferred exceptionally quickly and cheaply cross-chain using Umbria’s Narni Bridge. The following article explains how.
How Do I Bridge ETH from Ethereum to Polygon (MATIC) cheaply?
The world’s second-largest digital currency by market cap (ETH) can typically be transferred from the Ethereum blockchain to the Polygon blockchain in less than four minutes, and often at a cost of just $4-$9 using Umbria’s Narni Bridge. This is a fraction of the gas price of other solutions and has led to Narni being adopted by many in the NFT community who had previously been experiencing exorbitant fees.
Here’s a great video demo from one user, who takes viewers through the step-by-step process.
How to get APY on ETH
Another huge advantage of the Narni Bridge is the APY it pays liquidity providers (LPs) on a range of assets.
Users of Umbria’s cross-chain liquidity bridge can earn a passive income from their $ETH through Narni’s ‘pool and earn.’ This feature enables participants to lend their assets to the bridge, that is become liquidity providers, to earn interest. LPs receive fees when other users bridge ETH between networks. There is no impermanent loss, as experienced with most other platforms, as only one asset is provided as opposed to a liquidity pair.
Those providing liquidity to the Ethereum pool on Narni are currently seeing a 20% APY.
The NFT use case
As a result of the integration of Polygon on the OpenSea platform there’s been an explosion in the number of NFT projects being built on Polygon. This means there’s a massive demand for bridging ETH to the Polygon Network (that is exchanging ETH for WETH) in this space alone.
How does the Narni Bridge work?
Narni is a new style of cross-chain bridge that removes a lot of the encumbrances of the validator-driven model. It is called a liquidity bridge and its basic principle is to replace the on-chain validation protocol — used with many other bridges — with a liquidity pool protocol. For example, when migrating Ether between the Ethereum and Polygon Networks, there’s a liquidity pool on each side. A user sends their funds into the liquidity pool on the starting network and the bridge sends their funds back to them from the liquidity pool on the destination network. A small fee is paid by the user migrating their assets, of which a percentage is given to liquidity providers of the bridge on the destination network.